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Technical analysis of the price of XRP revealed the creation of corrective waves in line with the latest correction since December 3. In particular, the cryptocurrency is now trading between important Fibonacci levels that may be fixed for a long time. With the help of these Fibonacci levels, crypto analyst Dark Defender shared information on social media X, highlighting the price range of $2.13 and $2.92 as important for the price of XRP.
XRP Tests Fibonacci Levels During Market Correction
According to the XRP chart below, which was highlighted for the first time on social media platform X by crypto analyst Dark Defender, the XRP price rally at the beginning of the month saw it rise to around $2.92 on crypto exchange Binance, which also coincides with the 261.80% Fibonacci retracement level. This impressive high, however, was short-lived as the token faced a correction that lowered its price to support at $2.17. Notably, this support is also just above the 161.80% Fibonacci retracement level at $2.13, which is now an important price point for XRP going forward.
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With this in mind, Dark Defender noted that both $2.92 and $2.17 are the most important price levels to watch right now. The rebound from $2.17 suggests that maintenance may endand his analysis points to a shift to Wave B on a daily basis.
What to Expect During a B Wave
Speaking of Wave B, this analysis is based on a three-wave correction pattern. This pattern, consisting of three distinct phases, Waves A, B, and C, played out repeatedly during the XRP price rally. Within this structure, waves A and C represent downward trends, while Wave B indicates an upward trend. If this correction model were to repeat itself, the price of XRP could got up to $2.92, corresponding to the 261.80% Fibonacci retracement level, before another downtrend took us back to retest support at $2.13, the 161.80% Fibonacci retracement level.
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As Dark Defender noted, it may take several days to remove this build. This means that the price of XRP can continue to trade between these levels before any decisive move either up or down.
Latest market trends lift the break upwhich would send the price of XRP on a resumption of entry to new multi-year highs. At the time of writing, the price of XRP is trading at $2.37, up 2.9% in the last 24 hours.
Another factor behind this hope is this appointment of Paul Atkins is President-elect Donald Trump to lead the SEC. Atkins is widely considered crypto-friendly, and his potential leadership could mark the end of the long-running SEC-Ripple legal battle. Such a decision may invite significant entry of institutions and shops into the XRP ecosystem.
The featured image was created with Dall.E, a chart from Tradingview.com
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